S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8066
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 11, 2021
                                ___________
 
 Introduced by M. of A. THIELE -- read once and referred to the Committee
   on Consumer Affairs and Protection
 
 AN  ACT  to  amend the general business law, in relation to certain real
   estate syndication offerings
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Subdivision 4 of section 157 of the general business law,
 as added by chapter 754 of the laws of  1990,  is  amended  to  read  as
 follows:
   4. "Time share" means an interest in any arrangement, plan, scheme, or
 similar  device,  whether  by  membership, agreement, tenancy in common,
 sale, lease, deed, rental agreement, license, or right-to-use  agreement
 or  by  any other means, whereby [three or] more THAN TEN purchasers, in
 exchange for a consideration, receive ownership rights in or a right  to
 use the same accommodations or facilities in real property, or both, for
 different  intervals of less than a full year during any given year, but
 not necessarily for consecutive years, and which extend for a period  of
 more  than  three  years  or  which,  for  nominal consideration, may be
 renewed to continue for a period of more than three years.
   § 2. Paragraph (a) of subdivision 1 of section 352-e  of  the  general
 business law, as amended by chapter 1085 of the laws of 1968, is amended
 to read as follows:
   (a)  It  shall  be illegal and prohibited for any person, partnership,
 corporation, company, trust or association, or  any  agent  or  employee
 thereof,  to  make  or take part in a public offering or sale in or from
 the state of New York of securities constituted of participation  inter-
 ests  or  investments  in  real  estate,  mortgages or leases, including
 stocks, bonds, debentures, evidences of interest or indebtedness, limit-
 ed partnership interests or other security or securities as  defined  in
 section  three  hundred  fifty-two of this article, when such securities
 consist primarily of participation interests or investments  in  one  or

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11588-01-1

 A. 8066                             2
 
 more  real  estate  ventures, including cooperative interests in realty,
 unless and until there shall have been filed with the department of law,
 prior to such offering, a written statement or statements, to  be  known
 as  an  "offering statement" or "prospectus" concerning the contemplated
 offering  which  shall  contain  the  information  and   representations
 required by paragraph (b) of this subdivision unless the security offer-
 ing  is  exempted  hereunder  or  under SUBDIVISION TWO OF section three
 hundred fifty-nine-f[, subdivision two,] of  this  article  by  rule  or
 action  of the attorney general.  PROVIDED HOWEVER, FOR PURPOSES OF THIS
 SECTION TIMESHARING PLANS INVOLVING TEN OR  FEWER  PURCHASERS  SHALL  BE
 EXEMPTED  FROM  FILING  REQUIREMENTS  UNDER THIS SECTION. The term "real
 estate" as used in [the] THIS paragraph shall not include  mineral,  oil
 or  timber leases or properties, or buildings, structures, land or other
 realty housing or containing business  offices  or  industry,  owned  or
 leased  by  the issuer, where the issuer is not primarily engaged in the
 business of buying and selling such building, TIMESHARING PLANS  INVOLV-
 ING TEN OR FEWER PURCHASERS or other realty or leases or interests ther-
 ein.  The  circulation  or  dissemination of a non-firm offer (including
 circulation or dissemination of a  preliminary  prospectus  pursuant  to
 section  ten (b) of the securities act of nineteen hundred thirty-three,
 and the rules thereto  appertaining)  shall  not  constitute  making  or
 taking part in a public offering within the meaning of this section.
   §  3.  This  act shall take effect on the ninetieth day after it shall
 become a law.   Effective immediately, the  addition,  amendment  and/or
 repeal  of  any  rule  or regulation necessary for the implementation of
 this act on its effective date are authorized to be made  and  completed
 on or before such effective date.